How is the loan structured?
The loan works like a Line of Credit
The applicant gets approved for a limit. Once approved the applicant can drawdown, payback and redraw again.
Use of Funds
Funds are to be used for stock purchase invoices
Funds will be transferred directly to the supplier of stock
After 3 months use of the credit line, clients can apply for a % of the credit line to be used for cash payments to the client directly
Limits
Initially $120,000, with higher limits available once a satisfactory repayment history has been established
Minimum drawdown limit: $5,000
Maximum single drawdown limit: $50,000
Repayments
Weekly, by direct debit
Interest
A simple flat fee per drawdown:
8 weeks: 4.7%
12 weeks: 6.4%
For example: on an 8 week loan of 10,000, the fee would be $470. The weekly repayment would be $1,308.75 (total repayment of 10,470 / 8 payments).
Other Fees
Fees and an interest rate may apply in the event of dishonoured payments, restructure of the loan, or default.